Ingevity will buy a pine chemicals business

The pine-based chemicals maker Ingevity has agreed to acquire the pine chemicals business of the paper company Georgia-Pacific for $315 million. The business will add about $105 million in annual sales to Ingevity’s sales, which were $908 million last year. The business produces pine-based tall oil fatty acids, tall oil rosin, and tall oil rosin esters used in adhesives, paints, mining, and other applications. It manufactures most of its products at a plant in Crossett, Ark., that employs 70 people. The sale continues the exit of paper manufacturers from the pine chemicals business. Ingevity itself was formed last year when the paper company MeadWestvaco spun off its chemical business. And Kraton’s pine chemicals business was once part of International Paper. The addition of the Georgia-Pacific business will result in about $11 million in annual savings because of manufacturing optimization and lower logistics costs, Ingevity says.